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Prices go up (Sept. 2nd-8th, 2006)
Author:
admin
PublishDate:
2006-09-08 17:07:00
Hit:
492

Electronic prices continued to go up this week after the price hike of last week. Despite of the consecutive warns from the central government and the Exchange, key contract prices slumped at first but then bounced sharply and hit new highs. Active Sept. and March Raw silk closed at 243500 yuan and 249500 yuan at weekend respectively. And active Sept. and March Dried Cocoon closed at 82500 yuan and 82600 yuan Friday.

China’s autumn cocoon crop condition seems to be of many uncertainties due to the weather factor. There have been reports of silkworm death in Jiaxing. Meantime, the cocoon output in Sichuan and Chongqing will drop sharply due to the severe drought. Now the consensus is the country’s autumn cocoon output may be somewhat lower than the initial expectation. So the market expected a poor crop to push electronic prices.

As for the silk market sentiment in the coming months, opinions differ. Autumn cocoon crop situation dominates the market for a short term, however, the outlook for cocoon and silk prices will depend entirely on how much the domestic consumption and export together is during the year to fuel the growth of silk industry. Interestingly, China’s domestic silk consumption prospects are likely to brighten further.

In CCSE spot market, dried cocoon cost is forcing silk prices to move higher.
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